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KUALA LUMPUR: FGV Holdings Bhd
He says he is “disappointed” with the US Customs and Border Protection (CBP) ban on the importation of its palm oil products, and will engage with the agency to clear its name.
In its response issued this morning, the plantation group said that it has been taking concrete steps for several years to demonstrate its commitment to respecting human rights and labor standards.
“It is worth reiterating that FGV does not tolerate any form of human rights violation or crime in its operations.
“FGV pays close attention to any complaint of physical or sexual violence, as well as intimidation or threats, and as a responsible company, FGV will act on any case of this nature, including reporting them to the relevant authorities,” he said.
CBP announced yesterday that it has issued an immediate ban on palm oil and palm oil products manufactured by FGV and its subsidiaries and joint ventures.
The detention order is the result of a year-long investigation that revealed indicators of forced labor including abuse of vulnerability, deception, restriction of movement, isolation, physical and sexual violence, intimidation and threats and withholding of identity documents, among others, the agency said in a statement issued last night.
The investigation also raised concerns that forced child labor is potentially being used in FGV’s palm oil production process.
FGV said it is currently implementing a comprehensive long-term action plan under its affiliation with the Fair Labor Association (FLA) that comprises a series of initiatives to further strengthen various aspects of its labor practices.
Despite the challenges posed by the Covid-19 pandemic, FGV remains committed to implementing the action plan.
FGV believes that concrete progress has been made in the six months since the plan’s implementation in April and is confident that it is on the right track to meet the action points that need to be completed by the end of 2020.
“Since August 2019, FGV has been communicating with CBP through our legal counsel and has presented evidence of compliance with labor standards as committed by FGV.
“He will continue to work with CBP to clear the name of FGV and is determined to fulfill his commitment to respect human rights and uphold labor standards,” he said.
FGV’s statement is reproduced in full below:
FGV Holdings Berhad (“FGV”) refers to the Release Withholding Order (WRO) issued by the United States Customs and Border Protection (“CBP”) against palm oil and palm oil products. manufactured by FGV.
FGV would like to emphasize that all the issues raised have been the subject of public debate since 2015 and FGV has taken various steps to correct the situation. FGV’s efforts are well documented and in the public domain.
FGV is disappointed that such a decision was made as FGV has been taking concrete steps over the past few years to demonstrate its commitment to respecting human rights and upholding labor standards. As mentioned in our statement dated September 26, 2020, FGV has made various efforts to fulfill this commitment, including the following:
me. FGV continues to strengthen its procedures and processes in hiring migrant workers. FGV has established four one-stop-shop centers in Malaysia and in the countries of origin, namely India and Indonesia, as part of our efforts to strengthen pre-departure and post-arrival orientation programs for our migrant workers. Through these orientation sessions, our migrant workers receive information on various issues, including the terms of their employment, scope of work and nature of work, rights and responsibilities, as well as benefits and benefits.
ii. The FGV has also adopted its Guidelines and Procedures for the Responsible Recruitment of Migrant Workers in 2019 in accordance with international standards and will continue to strengthen the document. According to the Guidelines, FGV agrees to pay the official costs associated with hiring migrant workers, which include airfare and costs of work permit, visa, medical check-up and insurance. FGV has also reviewed its contract with recruitment agencies to require them to ensure that no fees are charged to workers.
iii. FGV does not participate in any recruitment or employment of refugees. Starting in 2020, FGV hires its migrant workers mainly from India and Indonesia through channels and legal processes recognized and approved by the Malaysian authorities and the countries of origin. As of August 2020, FGV has 11,286 Indonesian workers and 4,683 Indian workers, who together make up the majority of the FGV plantation workforce. Furthermore, FGV does not hire outsourced workers and all workers are directly employed by FGV.
iv. FGV is also a pioneer in the implementation of the electronic wallet (e-wallet) cashless payroll system for its plantation workers. E-wallet system, which provides worker empowerment, acts as a more convenient and efficient way for workers to manage their finances, has been successfully implemented since February 2020 in Gua Musang, Kelantan, involving 1,500 registered users in 11 of their farms. . By the first quarter of 2021, FGV aims to implement this system throughout its plantation sector, including farms in Sabah and Sarawak.
v. FGV does not practice holding passports of its workers and has installed a total of 32,250 safe deposit boxes in all its 68 complexes, as an option for migrant workers to keep their passports safely.
saw. In compliance with workers’ rights to adequate housing, FGV has invested approximately MYR 350 million over the past three years to improve housing facilities for its workers by building new residences on our plantations across the country.
vii. FGV respects workers’ right to healthcare through provided benefits, which cover annual outpatient care expenses and an unlimited allowance for hospital treatment.
viii. Aware that human rights and sustainability standards must be met throughout our supply chain, FGV has adopted a Code of Conduct for Suppliers (SCOC), which describes the principles and standards related to sustainability; business ethics and integrity; health and environmental safety; and labor, which our suppliers and vendors must meet. Any vendor or vendor that fails to comply with SCOC will be subject to FGV’s Vendor Delinquency Guidelines, with the possibility of being suspended or terminated and blacklisted if they do not demonstrate a willingness to rectify gaps in their practices.
It should be reiterated that FGV does not tolerate any form of violation of human rights or crime in its operations. FGV pays special attention to any complaint of physical or sexual violence, as well as intimidation or threats, and as a responsible company, FGV will act on any case of this nature, including reporting it to the relevant authorities.
Recognizing that respecting human rights is an ongoing effort, FGV became a participating company of the Fair Labor Association (FLA) and is currently implementing a comprehensive long-term action plan under its affiliation to the Fair Labor Association (FLA). ) which includes several initiatives to further strengthen various aspects of our labor practices such as our hiring process, training programs on human rights, living and working conditions, as well as complaint mechanisms, among others. FGV’s 2020 action plan was adopted on March 31, 2020 in consultation with the FLA and other stakeholders, including civil society organizations (CSOs).
The action plan was adopted at a time when the COVID-19 situation was rapidly deteriorating globally, including in Malaysia. Despite the unprecedented challenges posed by the COVID-19 pandemic, which forced FGV to realign its priorities to ensure that the necessary measures are taken to slow and combat the spread of COVID-19, FGV remained committed to implementing the action plan, and FGV believes that concrete progress has been made in the six months of implementation starting in April 2020. FGV is confident that it is on the right track to be able to meet the action items that need to be completed by the end of 2020 .
FGV’s membership in the FLA is subject to a rigorous public reporting and validation exercise. The FLA report on FGV’s progress in implementing the action plan is posted on the FLA website.
Since August 2019, FGV has been communicating with CBP through our legal advisor and has presented evidence of compliance with the labor standards committed by FGV. She will continue to collaborate with CBP to clear the FGV name and is determined to fulfill her commitment to respect human rights and uphold labor standards.
FGV Holdings Berhad
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